24 Sep 2009

Tough times still ahead, public service warned

8:04 am on 24 September 2009

Finance Minister Bill English has again warned public servants they face tough times over the next five years.

Mr English told the Institute of Public Administration on Wednesday that the public service will have to survive on little or no extra money.

However, he says that does not mean public servants will not get pay rises.

Mr English says government departments and agencies will need to be smarter about how they deliver public services.

He says with the Government's debt growing over the next few years, it cannot afford any further spending increases.

Mr English told Morning Report on Thursday the public service will be running on tight restraint, but the Government would prefer to avoid a pay freeze for public servants, so spending must be focussed on areas where there is good value.

Savings must be made where possible, by consulting frontline staff about how to do things better, he says.